Date:Wed, 12 May 2004 14:22:52 -0400
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Subject:EDUCATION: COLLEGE: FINANCE: Affordability in Higher Education:
We Know There's a Problem; What's the Solution?
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Date: Fri, 9 Jan 2004 07:00:31 -0500 (EST)
From: David P. Dillard <[log in to unmask]>
To: NetGold <[log in to unmask]>
Subject: EDUCATION: COLLEGE: FINANCE: Affordability in Higher Education: We
Know There's a Problem; What's the Solution?
EDUCATION: COLLEGE: FINANCE: Affordability in Higher Education: We Know
There's a Problem; What's the Solution?
Affordability in Higher Education: We Know There's a Problem; What's the
Solution?
<http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?
dbname=108_house_hearings&docid=f:88986.wais>
A shorter URL for the above link:
<http://snipurl.com/3qjo>
The full text of this hearing has recently been made available on the
internet.
--------------------------------------------
<DOC>
[108th Congress House Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:88986.wais]
AFFORDABILITY IN HIGHER EDUCATION: WE KNOW THERE'S A PROBLEM; WHAT'S
THE SOLUTION?
=======================================================================
HEARING
before the
SUBCOMMITTEE ON 21st CENTURY COMPETITIVENESS
of the
COMMITTEE ON EDUCATION
AND THE WORKFORCE
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION
__________
July 10, 2003
__________
Serial No. 108-24
------
C O N T E N T S
----------
Page
Hearing held on July 10, 2003.................................... 1
Statement of Members:
Kildee, Hon. Dale E., a Representative in Congress from the
State of Michigan.......................................... 10
McKeon, Hon. Howard P. ``Buck'', a Representative in Congress
from the State of California............................... 2
Prepared statement of.................................... 4
Statement of Witnesses:
Baum, Dr. Sandy, Professor, Skidmore College, Saratoga
Springs, New York.......................................... 12
Prepared statement of.................................... 14
Kirby, Dr. Patrick, Vice President and Dean of Enrollment
Services, Westminster College, Fulton, Missouri............ 53
Prepared statement of.................................... 55
Ross, Scott, Executive Director, Florida Student Association,
Tallahassee, Florida....................................... 35
Prepared statement of.................................... 37
Twigg, Dr. Carol, Executive Director, Center for Academic
Transformation, Troy, New York............................. 62
Prepared statement of.................................... 64
Wegenke, Dr. Rolf, President, Wisconsin Association of
Independent Colleges and Universities, Madison, Wisconsin.. 21
Prepared statement of.................................... 23
HEARING ON AFFORDABILITY IN HIGHER EDUCATION: WE KNOW THERE'S A
PROBLEM; WHAT'S THE SOLUTION?
----------
Thursday, July 10, 2003
U.S. House of Representatives
Subcommittee on 21st Century Competitiveness
Committee on Education and the Workforce
Washington, DC
----------
The Subcommittee met, pursuant to notice, at 10 a.m., in
room 2175 Rayburn House Office Building, Hon. Howard ``Buck''
McKeon [Chairman of the Subcommittee] presiding.
Present: Representatives McKeon, Isakson, Petri, Ehlers,
Tiberi, Osborne, Cole, Burns, Kildee, Tierney, Kind, Holt,
McCollum, Ryan, Payne, and Andrews.
Also present: Representatives Kucinich and Bishop.
Staff present: Kevin Frank, Professional Staff Member;
Alexa Marrero, Press Secretary; Alison Ream, Professional Staff
Member; Deborah L. Samantar, Committee Clerk/Intern
Coordinator; Kathleen Smith, Professional Staff Member; Holli
Traud, Legislative Assistant; John Lawrence, Minority Staff
Director; Ellynne Bannon, Minority Legislative Associate;
Ricardo Martinez, Minority Legislative Associate/Education;
Alex Nock, Minority Legislative Associate/Education; and Joe
Novotny, Minority Legislative Assistant/Education.
Chairman McKeon. A quorum being present, the Subcommittee
on 21st Century Competitiveness of the Committee on Education
and the Workforce will come to order. I mentioned to our
witnesses that we are going to have a vote. And being
omniscient, I was able to say that. But they said now that it
might not happen for 10 or 15 minutes. So I think what we will
do is go ahead and get started with our opening statements and
get as much of that out of the way as we can so that when we
get back from the vote we can turn the time to our witnesses.
We are meeting here today to hear testimony on
affordability in higher education. We know there is a problem.
What is the solution? Under Committee Rule 12(b), opening
statements are limited to the Chairman and the ranking minority
member of the Subcommittee. Therefore, if other members have
statements, they may be included in the hearing record. With
that, I ask unanimous consent for the hearing record to remain
open 14 days to allow member statements and other extraneous
material referenced during the hearing to be submitted in the
official hearing record. Without objection, so ordered.
I will begin now with my opening statement.
STATEMENT OF HON. HOWARD P. ``BUCK'' McKEON, CHAIRMAN,
SUBCOMMITTEE ON 21st CENTURY COMPETITIVENESS
Good morning. Thank you for joining us for this important
hearing today to hear testimony on college affordability,
discuss the effects of ever-rising college tuition, and debate
some of the possible solutions to this problem. This is our
eighth hearing examining issues that affect our nation's
colleges and universities and the students they serve as the
Committee continues to look at the reauthorization of the
Higher Education Act.
In 1965, Congress enacted the Higher Education Act, which
took on the central mission of ensuring that every low-income
student in the country could be afforded the opportunity to
pursue his or educational goals. Because of this commitment,
our country has made great strides in ensuring that millions of
eligible students can go to the college or university of his or
her choice. However, thousands of highly qualified students
cannot afford to attend college and fulfill their dreams
because higher education institutions or states increasing
their tuition and fees beyond the reach of students.
According to the Advisory Committee on Student Financial
Assistance, which provided testimony last year, cost factors
prevent 48 percent of all college-qualified, low-income high
school graduates from attending a 4-year college, and 22
percent from attending any college at all. Students from
moderate-income families do not fare much better. Forty-three
percent are unable to attend a 4-year institution and 16
percent are unable to enroll at any college. At the rate we are
going, by the end of the decade, more than two million college-
qualified students will miss out on the opportunity to go to
college.
As college prices have continued to rise, the Federal
Government has repeatedly increased financial support for
higher education. In the 4 years since the last reauthorization
of the Higher Education Act, Federal student aid has grown by
$23 billion. Last year, Congress also raised the maximum Pell
grant to $4,050 a year. Student loan interest rates are at
their lowest levels in the program's 38 year history.
I realize that the recent decisions of state legislatures
to reduce their spending on higher education have exacerbated
the problem. Appropriations have dropped in 14 states. At the
same time, average tuition at 4-year colleges has increased by
more than 10 percent in 16 states; in Iowa and Missouri,
tuition has risen by more than 20 percent, and in Massachusetts
it has jumped 24 percent. But that only tells half the story.
It does not acknowledge that state support for higher
education's operating expenses has grown by more than 60
percent over the last decade. And it does not explain why
tuition and fees continue to rise even in years past when state
coffers have overflowed with tax money.
I believe that it is time that we, the Federal Government,
states, institutions of higher education, the lending
community, parents, and students all take our role in
addressing this crisis seriously. There are some here in
government and out in academia who will say that the Federal
Government should not get involved in higher education. They
say, ``we are doing a great job and should do nothing more,
just send more money.'' There are some who say that all we need
to do is to increase the Pell grant award and change the loan
programs and that will solve the problem of college costs. I
respectfully disagree. I think that we need reforms. We need
them now because the rhetoric of the past decade has done
nothing to stem the rapidly rising cost of college in America.
Earlier this year, I put forth a proposal to closely
monitor tuition and fee increases by developing a college
affordability index that will serve as a standard measure for
institutions of higher education to measure increases in
tuition and fees and a tool by which students and families can
measure the extent of those increases in relation to the
Consumer Price Index. The proposal would also create College
Affordability Demonstration Programs for those colleges and
universities that want to try new innovative approaches to
improving higher education while reining in uncontrolled cost
increases. Also, it would prohibit the denial of transfers of
credit based solely on the accreditation of the institution
from which the student is transferring, and encourage states to
emulate Federal efforts to streamline red tape in the student
aid system.
While the details have not been released yet, some people
in higher education have even gone as far as to say that the
proposal will result in Federal price controls and jeopardize
institutional quality. While I do not argue with the fact that
our higher education system is the best in the world, I do
think that we can do a better job of making college more
affordable and more accessible. The last thing that I want to
do is tell colleges how to run their business. But I will not
stand idly by as they continue to raise their costs each year
to a level which has jeopardized students' ability to have
access to post-secondary education.
While this hearing is not on my particular proposal, I look
forward to ongoing discussion on solutions that address the
increase in college costs. There are many institutions
developing creative ideas and taking action to stem the tide of
ever growing crisis of rising college costs. Their students
have not suffered a loss in services and, more importantly,
have not suffered a decrease in quality. But many more higher
education institutions must think outside the box to ensure
that low-income families are not priced outside of the market.
With the Federal Government providing between 30 and 35
percent of all funding for higher education, which totals
approximately $90 billion annually, it is a Federal issue and
one where hard questions must be asked and solutions must be
considered.
And so as this Committee continues its effort to
reauthorize the Higher Education Act, we will examine the issue
of college affordability. We know that there is a problem.
Today, we will begin to find solutions.
[The statement of Mr. McKeon follows:]
Chairman McKeon. I now yield to Mr. Kildee for his opening
statement.
STATEMENT OF HON. DALE E. KILDEE, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF MICHIGAN
Mr. Kildee. Thank you, Mr. Chairman. I am pleased to join
you today at today's hearings on college costs. I know that
both of us are looking forward to the testimony of today's
witnesses. And I am hoping that the bipartisan spirit of the
Teacher Quality and Loan Forgiveness bills that the House
passed yesterday continues as we construct legislation on
college costs. You and I did a great job in 1998 and look
forward to writing a higher education bill as good as that bill
and with the improvements we need today.
The title of today's hearing really is an appropriate means
to start our discussion, ``Affordability in Higher Education:
We Know There's a Problem; What is the Solution?'' As Mr.
McKeon has noted, tuition and fees at post-secondary
institutions have increased over the past three decades
dramatically. The College Board has reported that tuition has
risen by 38 percent over the past 10 years. The question for
this Subcommittee should be why has this happened and what is
the appropriate, and I stress appropriate response, indeed, is
there a Federal response?
First, let me say that I share Chairman McKeon's concern
over the rising sticker price of a college education. We
certainly do not want the cost of a college education to deny
even one student access to a post-secondary education. We know
that an individual holding a bachelor's degree earns an average
of 80 percent more than someone with just a high school degree.
Over a lifetime, this earning gap for an individual with just a
high school degree widens to over $1 million. These statistics
are startling and make access to college education even more
important today.
Much attention has been given to the proposal by Chairman
McKeon to place Federal price controls on tuition at our
colleges and universities. I know that Chairman McKeon is
motivated by the financial impact that rising tuition is having
on students. Unfortunately, this proposal may have exactly the
opposite effect on students. It will bar the neediest of
students from attending a university simply because state
legislatures have cut higher education spending or endowments
and charitable giving are down due to the souring economy. They
will be denied Pell grants and student loans because of some
fault beyond themselves, some reason beyond themselves, the
economy, the state legislature or whatever.
In addition, it will likely lead to institutions reducing
the amount of need-based grant aid and sacrificing high-quality
programs and staff. This is likely to lead to the hiring of
more adjunct professors rather than maintaining a seasoned,
tenured faculty. Rather than creating new problems to solve an
existing one, this Subcommittee should be considering what is
the appropriate response to rising tuition. We should provide
incentives to colleges and universities to hold down costs and
to coordinate purchasing and administrative functions. It is
critical to consider that most of our students receive some
form of financial aid when they attend college. This impacts
the actual price they pay to attend an institution. Also, we
must remember that increasingly financial aid comes in the form
of a loan rather than a grant too increasingly. We should
reverse these priorities and increase the buying power of Pell
grants and other forms of Federal aid and institutional grant
aid.
Lastly, we must be mindful of the fact that the cost of
college will never impact many of our most disadvantaged
students who don't consider college a viable option regardless
of cost.
This Subcommittee should be focusing our efforts on early
intervention and other programs that ensure that all children
realize the importance of a college education. Programs such as
TRIO and Upward Bound are great programs to assist in that
area.
In closing, I want to stress again that the focus on this
Subcommittee on what assistance we can provide to students
facing rising college costs is a sound focus. However, we
should not be instituting proposals that will actually shrink
resources and access for our most disadvantaged students.
--------------------------------------------
The full hearing may be read at the URL above.
Sincerely,
David Dillard
Temple University
(215) 204 - 4584
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